Yacht insurance
Insurance payment for a calendar year
This payment depends on differing risks arising during yacht operation. In most cases it equals 0.7 to 1% of the assessed value. Its determination may be performed on the basis of the latest technical examination or surveyor decision. Vessel price, size, year built, loss ratio statistics, captain’s qualification, crew list, and the amount of insurance coverage, including the risks list are basic aspects of risks estimation.
The right way to determine yacht insurance cost
To determine yacht insurance cost (minimal for a ship owner) for an insurance contract, it is necessary to fill out the form, specifying the following:
Information on a ship owner.
- date and place of birth;
- postal address (in case a captain acts as a management company, you may specify the company’s address. It is a good idea to have it on US territory, as it may lower the insurance cost);
- sailing experience of the person whose name will be specified in yacht registration, names of every owned or used vessels (sailing experience is important, as it may lower the insurance cost);
- list of loss events (if any), an insurance company name and compensatory amount;
Information on a vessel
- personal purposes usage;
- personal use, suitable for chartering (requires specification of approximate number of weeks a year for charter);
- charter usage (requires specification of approximate number of weeks a year for charter. In certain cases, the charter usage of a vessel for a period of more than 18 weeks during one calendar year may change the insurance conditions, as it would be considered strictly commercial);
- registration state flag;
- sailing spots (specify the particular location of a vessel after leaving an anchorage and restrictions for that area;
- copy of the latest technical examination with normative hooking out of water;
- navigation restrictions;
Information on the crew
- captain’s application and his maritime certificate. (same documents for a turn captain, if he is hired);
- crew strength and number of men receiving salary;
Insurance cover amount
- in case the approximate hull insurance valuation equals $5,000,000, it is mandatory to confirm the desired sum or specify a lower one;
- in case the full marine insurance valuation including the hull equals to $10,000,000, it is mandatory to confirm the desired sum or specify a lower one;
- if a vessel accommodates a power boat 10 ft. or longer, it is mandatory to specify her manufacturer’s registration, year built, length, width, estimated value, motor model and h.p. quantity;
Financial purchasing background
- name of a bank (in case an owner takes the credit for purchasing a vessel);
- name of the organization or natural entity who performs the clearance (if any);
- credit value (if any)
Minimum yacht insurance period
In case we enter into an agreement with an insurance agent, the minimal insurance period is 1 year. Before signing a contract, agents pay attention to basic insurance risk aspects.
Insurance policy cost depends directly on the insurance risks aspects and following conditions:
- captain and crew’s experience (a more experienced crew gains the confidence of insurance companies);
- crew hiring conditions (a resident crew better knows all systems and machinery of a vessel, and this lowers possibility of accidents);
- anchorage ports and sailing spots (American insurance companies don’t assume responsibilities for coverage of the vessel in Cuba, Tahiti or pirate areas of Somalia);
- condition of equipment and rescue facilities;
- vessel insurance period (there are known cases when ship owners harm or destroy their vessels on purpose, so short insurance periods are considered risky and are often refused)
